Richard Truscott and John Carpay are, respectively, Saskatchewan director and Alberta director of the Canadian Taxpayers Federation

A rip in the country's fabric was torn a little wider in an Edmonton courtroom earlier this month, when Federal Court Justice Douglas Campbell ruled in Benoit vs. Canada that Treaty 8 Indians and their descendants will never have to pay taxes again. The court case involved a group of natives from northern Alberta, who claimed their ancestors had been promised a total exemption from all taxes when they signed Treaty 8 in 1899.

The ruling directly affects about 35,000 aboriginal people in northern British Columbia, Alberta, Saskatchewan, and the Northwest Territories. Some are expecting to be reimbursed for taxes they have paid over the past century -- "If that happens I'm going to be a rich man," said one chief. The cost of making good on back taxes could amount to tens, even hundreds of millions of dollars if you consider 100 years of taxes paid in today's dollars plus interest.

Other Indian leaders know the thin edge of a wedge when they see one. Perry Bellegarde, Chief of the Federation of Saskatchewan Indian Nations (FSIN), is already pushing for all of Saskatchewan's 100,000 aboriginal population to be tax-free. "We view all the Victorian treaties like one huge treaty," he says. In this "highest common denominator" argument, if the signatories of one treaty allege they were promised tax exemption, for whatever reason, the signatories of all treaties must get the same exemption.

Thankfully, the federal government has appealed the Benoit decision. One thing seems certain -- taxpayers will be on the hook for uncounted millions in legal costs as other aboriginal groups seek to use this case as precedent to interpret other treaties. If the position of these plaintiffs ultimately prevails, most of Canada's 700,000 treaty Indians, and their descendants, will be exempt from all taxes, both on and off reserve. Yet, they will remain beneficiaries of generous government spending to fulfil actual treaty requirements and social policy obligations. The remaining taxpayers will have to pick up an expanded share of the tab. It is hard to imagine a state of affairs that would breed more ill will and resentment between Canadians.

The very survival of some provinces may be at stake. If the number of aboriginal people in Saskatchewan rises to more than 30% in the next few decades, as is predicted by most demographic projections, how will the government pay for schools, hospitals, and roads if a third of the population are isolated from the economy and pay no taxes whatsoever?

If this scenario seems farfetched or even bizarre, just consider the grounds on which the case was decided. As Campbell concedes in his decision, "It has been proved that there was no intention on the part of the treaty commissioners to grant the tax exemption claimed by the plaintiffs, but ..." (and here's the zinger) " ... the aboriginal people believed such a promise had been made ... In order for the honour of the Crown to be maintained, the defendant is required to recognize and fulfil the tax assurance as it was understood by the aboriginal people." So in the eyes of Justice Campbell, the Indians' mistaken belief trumps the facts.

If you've heard from your great grandfather that back in 1917 Prime Minister Borden promised income taxes would only be temporary, we're sorry to say that third-hand hearsay only serves as solid evidence in aboriginal cases. Oral histories are only as accurate as human memory, they often contradict each other and historic evidence, and the long-dead original sources can't be cross-examined. Yet in the 1997 Delgamuukw case, Supreme Court Chief Justice Antonio Lamer ruled, "Notwithstanding the challenges created by the use of oral histories as the proof of historical facts, the laws of evidence must be adapted in order that this type of evidence can be accommodated and placed on equal footing with the types of historical evidence that courts are familiar with." This is how hearsay and misunderstanding came to have more legal weight than historic documentation and reliable information in Justice Campbell's courtroom.

The potential damage to the social, economic, and political fabric of Canada caused by the Treaty 8 case is enormous. This is exactly why the Canadian Taxpayers Federation intervened in the case. Defenders of the so-called "right" not to pay taxes ought to take a hard look at what they are defending -- the economic segregation of Indians and the lack of economic responsibilities (such as paying taxes) that is the failed paternalistic model of the past.

A prosperous Canada needs fair and reasonable taxes and the contribution of all its citizens to succeed. On this point an overwhelming majority of Canadians agree. A Compas poll from December showed that 74% of all Canadians believe aboriginals should pay the same level of taxes as other Canadians. All of the people of Canada need and deserve tax relief and tax reform, but both must be based on the principle of fairness. If someone does not pay taxes, it should be because they are too poor to pay, not because of their ancestry. Equal responsibility is the price of equal rights.